VANCOUVER, May 16, 2013 /CNW/ - Colibri Resource Corporation ("Colibri" or the "Company") (TSX.V-CBI) is pleased to provide an update of exploration activities at the 6418.5 hectare Colibri Gold Project near the town of Caborca in Sonora, Mexico. In March of 2011, Colibri entered into an option and joint venture agreement with Agnico Eagle Mines Ltd. (AEM). Please refer to Company news release dated March 2, 2011 for details. AEM refers to the project as the Pitaya Project.
Colibri announces that it has been notified by AEM that effective May 14, 2013 AEM has terminated the second option under the Earn-in and Shareholders Agreement dated February 28, 2011 (the "Earn-in Agreement").
AEM previously exercised the first option under the Earn-in Agreement on November 16, 2012, thereby acquiring a 51% interest in the Company's gold project in Sonora, Mexico (the "Project"). Colibri currently holds a 49% interest in the Project.
Following termination of the second option, AEM and Colibri will now jointly operate the Project, with AEM as General Manager, at their current ownership levels subject to adjustments relating to budget funding obligations. As AEM has also terminated the sole-funding period, any further contributions to the Project must now be contributed by AEM and Colibri in proportion to their ownership interests.
The Colibri (Pitaya) Project lies within a prolific northwest-trending belt of orogenic gold deposits in Northern Sonora, which includes La Herradura and Noche Buena Mines (Minera Penmont JV - Fresnillo PLC 56%, Newmont USA Ltd. 44%), the San Francisco Mine (Timmins Gold Corp.), and the El Chanate Mine (AuRico Gold Inc.). The average gold grades in the open pit resources of the mines mentioned above range from 0.57 to 0.78 g/t Au.
There is considerable exploration activity in the area. In 2012, Minera Penmont drilled 12 exploration holes immediately to the east of the Colibri (Pitaya) Project on their adjacent concession. All of these holes are within one kilometer of the property boundary, along strike to the southeast of mineralization in the El Pliegue Zone.
AEM initiated exploration activities at the Colibri (Pitaya) Gold Project in September of 2011 with surface rock sampling and a mobile metal ion (MMI) soil sampling Results from this program, combined with geological information from previous property work, were used to design a diamond and reverse circulation (RC) drill program. AEM drilled a total of 5,697 metres in 20 holes, which were drilled in four different areas of the property. A table with drill hole coordinates, orientation, and final depths is included at the end of this news release. Highlights from the drill program are shown in the table below. Please note that the sample intervals do not represent true widths.
The following table shows highlights of the 2012 Pitaya drill program:
The results demonstrate that significant gold mineralization occurs over a widespread area of the Pitaya Project.
Exploration work is ongoing at the Colibri Project. AEM initiated the 2013 drill program on March 15th, with an initial campaign planned of 900 metres of diamond core to test targets at the El Pliegue and El Diente Zones. The results of this drilling program are not yet available. At the conclusion of the 2012 exploration program, AEM has met the option payments and work requirements to secure 51% ownership of the Pitaya Project per the "Earn-In and Shareholders Agreement".
AEM has a QA/QC protocol in place which includes the use of certified standards, blanks, and duplicate samples, and secure care and custody of samples.
Diamond drill core was logged, photographed, and then cut in half with a diamond saw under supervision of Company geologists. The Company maintained a secure chain of custody while transporting half-core samples to ALS Chemex de Mexico S.A. de C.V. facility in Hermosillo, Mexico.
Samples were analyzed using an AEM-specific analytical package coded as MXEX7, which includes gold analysis by fire assay and an atomic absorption and over-limits gravimetric finish, silver analysis by atomic absorption, and a package of 31 elements by ICP (induced coupling plasma). ALS Chemex' quality management system complies with International Standards ISO/IEC 17025:2005 and ISO 9001:2008 and meets all established criteria as related to reporting requirements for mining and exploration companies under National Instrument NI-43-101.
Colibri Resources is a Canadian exploration company focused on the exploration and development of base and precious metal projects in Mexico. Cary Pothorin, P.Geo., a qualified person as defined in National Policy 43-101, is responsible for all technical information contained in this news release.
In a separate work program, Colibri Resource Corporation has carried out a two-phase property-scale soil sampling program at the 100% owned Evelyn Gold Project, also located in the Caborca area in northern Sonora. Results from this sampling program will be reported when all results have been received and reviewed.
"We have significantly reduced our exploration work and administrative spending for FY 2013 in an effort to preserve capital, and will review this policy during the first quarter of FY 2014" stated CEO Lance Geselbracht, P.E. "We will assess what the impact of this notification from AEM has for the Colibri project and determine what options we have for the site. Other than waiting for results from the current drilling program, no other work can proceed on the site until the details of the joint venture are implemented per the Earn-in Agreement".
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are disclosed in the Corporation's documents filed from time to time with the TSX Venture Exchange and, among others, the British Columbia Securities Commission as well as under the heading "Risk Factors" in the Company's annual and interim Management Discussion and Analysis.
TABLE OF SIGNIFICANT COLIBRI/PITAYA 2012 AEM DIAMOND AND RC DRILL INTERCEPTS
|NAS-12-03||No significant results||Naranja Sur|
|NAS-12-04||No significant results||Naranja Sur|
|NAS-12-06||No significant results||Naranja Sur|
|NAS-12-08||No significant results||Naranja Sur|
|PL-12-03||No significant results||El Pliegue|
|PLR-12-02||No significant results||El Pliegue|
|PLR-12-03||No significant results||El Pliegue|
|NAN-12-01||No significant results||Naranja Norte|
|NAN-12-02||No significant results||Naranja Norte|
NOTE - Sample intervals are core widths and do not represent true widths.
COLIBRI/PITAYA PROJECT DRILL HOLE LOCATIONS
|HOLE||UTM N||UTM E||AZIMUTH||INCL.||DEPTH||ZONE|
|NAD 27 MEXICO DATUM||(degrees)||(degrees)||(m)|
SOURCE: Colibri Resource Corporation
For further information:
Lance Geselbracht, P.E., President and Chief Executive Officer
Tel: (250) 755-7871